This 20-Something NYU Student Wants To Change The Way Young People Manage Their Money

Scott
Gamm is the author of "More Money Please."Photo: Courtesy of Scott Gramm

At 21 years
old, NYU undergrad Scott Gamm is not your typical
co-ed.

Since the ripe
age of 17, Gamm has been an avid student of all things
finance.

He launched a
blog, HelpSaveMyDollars.com, soon after the recession took
hold as a way to help people his age grow into conscious,
responsible spenders and savers.

"You know, my
parents' finances were one of the main causes of their divorce,
and right after that [happened], there was the recession," Gamm
told Business
Insider. "Those were two reminders within a few years of each
other that finance is a serious topic and it's not something I
want to leave up to trial and error."

The only way you should be using a credit card is by paying off
the entire balance every month –– no matter what your minimum
balance says. By paying the minimum payment, you’ll wind up
leaving a balance on the card and your interest rate will kick
in. Minimum payments are calculated to keep you in debt. Ignore
the minimum and pay the entire balance, or at least as much of it
as you can.

2. Use credit cards for one or two small
expenses.

You're young and you're just starting to build up you credit
history. So use credit as a useful tool to get there –– not as a
free pass for a fancy lifestyle. Do that by picking one or two small
expenses each month to charge on your credit card. And try to
keep your spending under $100 per month. That’s at least a
manageable amount of money to be able to pay off the bill in
full. A good rule of thumb: Never spend more than you
earn.

3. Prepaid cards are stupid. Don't you forget
it.

If you’re
looking to build up a solid credit history, you won’t have any
luck by signing up for a prepaid debit card. Why? Because none of
the activity on a prepaid card is reported to the three credit
bureaus (Experian, Equifax and TransUnion). Plus, you’re going to
get slammed with fees on prepaid cards like monthly fees,
dormancy fees and, get this, a fee just to load money onto the
card –– that’s the entire point of a prepaid card!

4. Stop paying bank fees.

The days of free checking are disappearing. And unless you
maintain the bank’s minimum balance requirement, which can be
$1,000-$1,500, you’re throwing away $10-$12 per month. If you’ve
been charged this fee before, consider switching to an online
bank or a credit union. You'll find there are either no or fewer
fees to deal with.

5. Do yourself a favor and unsubscribe from store
emails.

When you get an email from your favorite store letting you know
they’re having a sale, this reminds you to head over to the
store. If you hadn’t received that email, the store wouldn’t have
even been on your mind. Unsubscribe.
The same goes for those daily deal sites – unless you’re in the
market for something specific (a trip to Europe, new shoes or a
restaurant deal), being reminded of random flash sales is a
sure-fire way to start spending beyond control.

6. Negotiate a higher salary.

Most of us are too scared to ask for a higher salary. But if you
don't, you’re leaving money on the table. Negotiating on your
first job out of college might be a tad risky, but don’t feel
afraid to ask for more money on future job offers. Plus,
negotiating reflects persistence and that “stop at nothing”
attitude that employers expect. Do some research in your field to
find out what someone at your level is earning, so you'll know
whether to ask for more during the hiring process.

7. Face it –– 401(k)s aren’t that into you.

If your employer contributes to your 401(k) (a retirement account
that lets you automatically contribute a portion of each
paycheck), then you should contribute, too – up to the employer’s
match. If you don't, you're basically throwing away free money.
If they don’t contribute anything, you might be better off going
a different route.

The fees are exorbitant (employers hire large asset managers to
take care of the employee’s 401(k) accounts, and that isn’t
free). In fact, a survey last year from Demos showed that on
average, a couple could spend $155,000 in 401(k) fees over a
lifetime. Instead, take ten minutes and open up a Roth IRA online
from a discount brokerage firm. This is an account where you
contribute money that you’ve already paid taxes on and your money
will grow tax-free. Who knows where tax rates are headed
(probably up), so get the taxes over with now.